Explanation
Given
[tex]\begin{gathered} P=\text{ \$1590} \\ r=7\frac{1}{2}\text{\%} \\ t=3\text{ years} \end{gathered}[/tex]
a) The discounted load can be gotten with the formula below;
[tex]\begin{gathered} I=PRT \\ I=1590\times\frac{7.5}{100}\times3 \\ I=357.75 \end{gathered}[/tex]
Answer: $357.75
b) The amount received is
[tex]Net\text{ amount = P-I=1590 -357.75=1232.25}[/tex]
Answer: 1232.25
c) The true interest rate is
[tex]\begin{gathered} I=PRT \\ 357.75=1232.25\times R\times3 \\ 357.75=3696.75R \\ switch\text{ sides} \\ 3696.75R=357.75 \\ R=\frac{357.75}{3696.75}=0.09677=9.68\text{\%} \end{gathered}[/tex]
Answer: 9.68%
